The Federal Inland Revenue Service (FIRS) has achieved a milestone by announcing a remarkable tax revenue collection of N5.5 trillion for the first half of 2023, covering January to June.
This unprecedented achievement marks the highest tax revenue collection ever recorded by the Service in any six-month period of a fiscal year.
The news was shared through a statement issued by Johannes Oluwatobi Wojuola, the Special Assistant to the Executive Chairman for Media and Communications. During a presentation of the 2023-2024 tax revenue outlook to the National Economic Council at a meeting held on July 20th, 2023, at the Presidential Villa in Abuja, Mr. Muhammad Nami, Executive Chairman of the FIRS, proudly announced this significant accomplishment.
According to the 2023 Half-Year Collection Report included in the presentation, the FIRS surpassed its target for the first half of the year, achieving over one hundred percent of its N5.3 trillion mid-year target.
The report further revealed that tax revenue collected from the oil sector during the period amounted to N2.03 trillion, surpassing the target of N2.3 trillion, while non-oil tax collection reached N3.76 trillion, exceeding the target of N2.98 trillion.
Mr. Nami emphasized that the excellent performance was largely due to improved voluntary tax compliance, facilitated by the automation of FIRS’ tax administrative processes. Notably, the Service collected a record-breaking N1.65 trillion in tax revenues in June 2023, the highest-ever for a single month.
Despite facing challenges such as the impact of currency redesign and the 2023 General Elections on the economy during the first and second quarters of the year, Mr. Nami commended the organization’s “good head start” and expressed optimism about meeting the yearly target.
The FIRS Executive Chairman credited the achievements to enhanced voluntary tax compliance by taxpayers, the continued improvement of automation in tax administration processes, including updated VAT filing procedures, and persistent engagement with stakeholders in both the formal and informal sectors of the economy.
Looking ahead, Mr. Nami assured the nation of better days ahead in terms of tax revenue collection, anticipating improved performance in the second half of the year. He expressed confidence in the positive impact of the current government’s policies on the economy and the ongoing enhancements to tax administration processes.
This remarkable feat comes after the FIRS achieved a total collection of N10.1 trillion in 2022, setting a new record as the highest tax collection ever made by the agency in a single year.
